Using the data from the past five years, plus reliable predictions for the upcoming year, I’d like to discuss the pros and cons of buying/selling at certain times of year.
We will discuss them using quarters. 1st quarter:Jan-March, 2nd quarter:Apr-Jun, 3rd quarter: Jul-Sep, 4th quarter Oct-Dec.
For the past five years (and beyond) the second quarter is when the most homes are listed each year, closely followed by the third quarter. The fewest number of homes is listed in the first and fourth quarter, but in the fourth quarter, more of the homes that are listed actually sell. The reason for that is because there isn’t much on the market in the fourth quarter and the people looking for homes are very motivated. Many investors like to shop in the first quarter and buy homes that were listed too high in the second and third quarter that haven’t sold, so the sellers really drop their price once the first quarter has rolled around.
March has the best pricing for sales, meaning that homes listed in March sell for closer to their listed price than any other time. Their list to sales ratio was 97%- which sounds really great, until you realize that 3% of $340,000 (the current average sales price) is $10,000. Personally, mine is 100.4%, which means I sell homes for the price I list them at and sometimes even over it!
So, statistically speaking, the best time to buy would be during first quarter, so that it would close in March. If buying, you want to do so when interest rates are low, as that affects your monthly payment greatly. Luckily for us, this year we have very low interest rates that are unlikely to change, as it is an election year and politicians don’t want to ruffle feathers and change things up. You’ll have more selection in buying in the second and third quarter, but you’ll have more competition for homes as there are more people shopping then.
If you are interested in buying or selling this year and want to know when your personal best time will be, feel free to contact me and I can help you decide when would be best for you!